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Best way to manange capital gains

Discussion in 'Accounting, Tax & Legal' started by switched, 6th Mar, 2008.

  1. switched

    switched New Member

    6th Mar, 2008
    Have had a dabble on the share market over the last year and a half, and currently am sitting about 857% gains :)
    Invested 3K and sitting at 28K in my share trading acct.
    These stocks I have held for over a year, and in the next 6 months - 12 months I would like to pull out to purchase a property (maybe longer - depending on the market)..
    I am on about 62K a year.
    Whats the best way to transfer these funds by paying the least tax on the gains?
    I do see a tax accountant every year at tax time, but would like some ammo before I get to him this year..
    Thanks in advance. :)
  2. NickM

    NickM Co-founder Staff Member

    20th Jun, 2005
    Hi Switched,
    well done - smart investing

    1. dont be entirely guided by tax. no point holding the shares to save tax if the market is heading downward. as a general rule its more important to make the money

    2. Ideally in a perfect world, hold the shares until 1 july then sell. CGT payment deferred until April/ May 2010.

    3. At whatever point you sell, a plan would be to try and be in a position to prepay interest on the IP loan to reduce the cgt. This will depend on your position of course

    4. see 1

    Keep up the good work